Hills Holdings (HIL)

Hills Holdings
has warned that it expects its full-year profit from operations to be below the previous year’s by between 35 per cent and 40 per cent. The group blamed poor results from its Orrcon Steel business and the higher Australian dollar for the forecast lower result. It announced it was moving its Orrcon pipe and tube business at Unanderra in NSW from a manufacturing and importing plant to solely importing large pipe and tube. Aside from a high Australian dollar, aggressive import competition and a shortfall in large pipe project work resulted in the move, management said. The site at Unanderra will close early in the new financial year after all current commitments to customers have been met. Hills still expects to pay the majority of profits from operations to shareholders as fully franked dividends. The group announced a net profit from operations, excluding unusual items, in line with guidance given but below the previous corresponding period by more than 29 per cent.